Scottish unemployment rate increased in last quarter, statistics show

Unemployment in Scotland has increased in the last quarter, according to latest figures.

Data released by the Office of National Statistics (ONS) showed that from May to July 2023 the estimated unemployment rate for those aged 16 and over was 4.3%, the same as the UK wide rate.

This was 1.2% up on the previous quarter in Scotland.

There were 122,000 people aged 16 and over unemployed and 2,689,000 in employment between May and July this year, according to ONS estimates.

The unemployment rate for men aged 16-plus rose over the quarter to 4.8%, while the unemployment rate for women aged 16-plus rose over the quarter to 3.8%.

The estimated economic inactivity rate of people between 16 and 64 years old fell to 21.4% over the same period.

The estimated employment rate for people aged between 16 and 64 years old, rose over the quarter to 75.1% – while estimates from HMRC show 30,000 more people are on a payroll than in August 2022, with a total of 2.45 million.

The Scottish Government said the figures “reflects the challenges facing the economy amid the cost-of-living crisis” and vowed to support flexible working and investing in training.

Wellbeing Economy Secretary Neil Gray said: “The rise in the employment rate over the quarter and fall in the inactivity rate are welcome.

“The increase in the unemployment rate over the quarter and the year for those aged 16 and over across Scotland reflects the ongoing challenges facing the economy amid the ongoing cost-of-living crisis, compounded by high inflation and interest rates.

“The Scottish Government is committed to supporting more people into work – including those with a disability, those with health conditions and those with caring responsibilities – through employability and skills support as well as continuing to support and promote flexible working.

“The 2023-24 Programme for Government has committed to expanding access to funded childcare which can support more parents and those with caring responsibilities get back into work sooner or take up employment.

“We are developing a lifetime skills offer for adults and our apprenticeship programme is enabling employers to invest in their work force and provide greater opportunities to those at the start of their careers.

“However, with industries such as hospitality and agriculture still facing recruitment challenges an urgent reassessment of UK Government immigration policy is necessary to increase access to the international labour and skills that Scotland needs for our economy and communities to prosper.”

The figures showed that benefits claims fell by 1.4% from August 2022, with 109,200 logged, and the claimant count unemployment rate in August 2023 was 3.6%.

Scottish Secretary Alister Jack said: “Even in the face of global challenges, Scotland’s job market has remained resilient.

“Since 2010, the number of people in work in Scotland has increased by over 200,000. But we know there is more to do to help people find and succeed in fulfilling jobs.

“Our £3.5bn package will remove barriers to work, including by delivering more tailored job support, raising the amount that can be claimed for childcare by those on Universal Credit, and expanding the Midlife MOT to help upskill over-50s.

“Taken together, this will help to unlock employability potential, delivering on our promise to grow the economy and halve inflation.”